Hidden Fees Crackdown Bill Introduced in Colorado Assembly; Hidden Charges would be Trade Violation if Bill is Passed
Denver, CO: State Rep. Naquetta Ricks recently visited Las Vegas and compared hotel rates to find the best deal.
Upon her arrival, she claims that the cost of her accommodation increased by $240. The hotel added an undisclosed “resort fee” to the accommodation price, which was not included in the initial listing.
She has proposed a bill that would prohibit advertising or selling a product or service without revealing all fees in advance. Violations would constitute a misleading trade practice.
According to the consumer advocacy group CO-PIRG, there has been an increase in several types of costs such as resort fees, convenience fees, processing fees, service fees, and others.
The measure provides exemptions for government-regulated entities such as airlines, financial institutions, and the postal service. Restaurants and artisan breweries are also eligible for exemptions.
State Representative Mike Lynch, who is against the bill, questioned its intended audience, describing it as a solution looking for a problem.
Colorado legislators discussed a bill aimed at increasing transparency by making hidden fees more visible. The legislation successfully passed its initial obstacle at the state Capitol on Wednesday.
The law aims to prohibit promoting a product or service without disclosing any associated fees or costs. The bill’s sponsors argue that breaking the ban might be classified as a “deceptive trade practice.”
Legislators deliberated on the advantages and disadvantages of the plan during a hearing. The bill was endorsed by the Business Affairs and Labor Committee with a 7-3 majority.
